A final budget that calls for an increase in spending, primarily on capital projects and personnel services, goes before Whitefish City Council on Monday.  

The city's fiscal year 2027 budget totals about $66 million, which is an increase over the previous fiscal year budget of $59.6 million. Compared to the previous fiscal year, expenditures are set to increase by about $5 million, and interfund transfers are increasing by about $1.5 million.  

City Council meets at 7:10 p.m. at City Hall, 418 E Second St. 

City Manager Dana Meeker said the budget is designed to sustain essential public services while addressing rising operational costs, state-mandated tax structure changes and significant capital needs.  

"The budget maintains responsible reserves, supports employee recruitment and retention, and advances priority infrastructure projects across our community," Meeker said in her budget memo.  

Under the budget, a primary residence with a market value of about $1 million would see a less than 1% increase in its city tax bill. This works out to an annual estimated increase of $7.76. While a second home or short-term rental with the same value will see an estimated tax increase of $615.85.  

The increase in expenditures in the budget is primarily due to an increase in capital expenditures of $3.25 million. Major capital improvement projects include improvements at Armory Park, resurfacing of the Grouse Mountain tennis courts, resort tax street improvement projects for finishing Armory Road and design of Skyles Place/Lakeside Boulevard and the acquisition of a quick attack pumper for the Fire Department.  

The budget factors in an increase in personnel services of $1.3 million and operating and materials and services of $1 million.  

The budget provides city employees with a pay increase of 4%, along with a market rate adjustment based on a previous study that found city employees were being paid below market rate. The budget also accounts for new full-time and part-time positions in several city departments.  

At a recent work session, Councilors indicated a desire to levy 5 carry-forward mills in the budget that went unused in previous budget cycles. The move means the city won't be using reserve funds for ongoing operational costs. It will use reserves for capital improvements and equipment purchases.  

"While the decision to increase property taxes is never taken lightly, the increase in property tax revenue ensures the use of reserves is sustainable and will not result in a significant increase in property taxes in future years," Meeker said.  

During the meeting, Council is also set to adopt its capital improvement program, its water master plan and its wastewater master plan.  

It will consider a request from Habitat for Humanity Flathead for resort tax funds to purchase 1974 and 1982 Whitefish Ave. to construct two townhomes.  

During a work session at 5:30 p.m., Council will hear its annual update on the Mountain Climber. Then at 6:15 p.m., it will discuss the formation of a Technical Advisory Committee to coordinate transportation planning.  

Deputy Editor Heidi Desch can be reached at 406-758-4421 or [email protected]. If you value local journalism, pledge your support at dailyinterlake.com/support.